Activist investor Stilwell Group buys more shares of Peoples Financial

Activist investor Stilwell Group reported that members of the group acquired more common shares of Biloxi, Miss.-based Peoples Financial Corp., while saying the management and directors of the company have "ill-served" the shareholders.

The purpose of the transaction was to profit from the appreciation in the market price of the shares through asserting shareholder rights. Stilwell Group believes that the value of the issuer's assets is not adequately reflected in the current stock price in the market. It urged Peoples Financial to explore all possibilities to maximize shareholder value.

In a March 14 letter to fellow shareholders of Peoples Financial, the group had asked to "deliver a message to the board of directors that it's time for a change" and vote the green proxy card from the activist investor.

Stilwell reported that its nominees for directors at the company's 2021 and 2022 annual meetings were not elected. Following the 2022 meeting, the Federal Reserve Board of Governors notified Stilwell of its non-objection to the group's proposal to buy additional shares of Peoples Financial up to 14.9%.

Members of the group may make additional purchases and sales of shares of common stock, the activist investor said in a filing.